How Entrepreneurial is the UK?

Transcription

1 How Entrepreneurial is the UK? GEM UK 2014 Results Mark Hart, Jonathan Levie, Karen Bonner and Cord Christian-Drews GEM UK 2014 Launch Event BIS Research Conference London, 3 rd March 2015

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3 GEM Conceptual Model Basic requirements - Institutions - Infrastructure - Macroeconomic stability - Health and primary education Efficiency enhancers Established Firms (Primary Economy) Social, Cultural, Political Context - Higher education & training - Goods market efficiency - Labour market efficiency - Financial market sophistication - Technological readiness - Market size Innovation and entrepreneurship New branches, firm growth Entrepreneurship Attitudes: Perceived opportunities Perceived capacity National Economic Growth (Jobs and Technical Innovation) - Entrepreneurial finance - Gov. entrepreneurship programs - Entrepreneurship education - R&D transfer - Commercial, legal infrastructure for entrepreneurship - Entry regulation Activity: Early-stage Persistence Exits Aspirations: Growth Innovation Social value creation

4 GEM Entrepreneurial Pipeline

5 Key Messages from GEM Global 2014 African economies showed the highest ability to perceive and pursue entrepreneurial opportunities with little fear of failure. In contrast, European Union nations are less optimistic, see fewer opportunities and are more uncertain about their skills in acting entrepreneurially. Total early-stage Entrepreneurial Activity (TEA) is highest among factordriven economies and declines in economies with higher Gross Domestic Product per capita (GDP pc). The lowest TEA rates overall are in European economies (7.8% in EU economies and 6.0% in non-eu economies).

6 GEM UK 2014 In 2014, 10,750 adults aged were sampled for GEM UK (just over 200,000 worldwide). Supported by BIS, Welsh Government, Hunter Centre for Entrepreneurship, Invest NI and PRIME. UK pooled dataset ( ) for ~300,000 adults (16-80yr olds).

7 GEM UK Datasets underpins a range of unique analyses International benchmarks and comparative analysis tracking entrepreneurial attitudes, aspiration and activity over time of the adult population Only source of data on key groups of individuals - e.g., women, young people and ethnic minority groups Sub-national analysis with the pooled dataset Home Nations, city-regions/leps multi-level analytical techniques Input into wider conceptual frameworks GEDI Opportunities for longitudinal analysis - PSED

8 Participation in Entrepreneurship

9 Early-Stage Entrepreneurial Activity (TEA)

10 Early-Stage Entrepreneurial Activity UK Home Nations

11 Opportunity and Necessity Entrepreneurship

12 Rising Nascent Opportunity in 2014

13 Digging Deeper A deeper understanding of entrepreneurial motivation beyond simplistic opportunity and necessity motives is important.especially when it comes to predicting entrepreneurs expectations about growing their business and hiring employees Which were one key link to subsequent business performance (in terms of job growth, innovation and exporting)

14 Entrepreneurial Journey of Necessitymotivated Entrepreneurs Nascent (23%) Performance: Job Growth (N= 125 active businesses) Growth (19%) No change (78%) Decline (3%) Active (53%) Performance: Innovation (N= 124 active businesses) High (6%) Some (42%) None (52%) Sold (2%) Dormant (8%) Closed (15%) Performance: Exports (N= 125 active businesses) >25% of customers outside UK (11%) 1-25% of customers outside UK (21%) No exports (68%)

15 Female Early-Stage Entrepreneurial Activity

16 Senior Entrepreneurship (50-64 years old)

17 UK Entrepreneurial Attitudes

18 Measures of Entrepreneurial Aspiration 2014 (% of TEA or EBO entrepreneurs) High Job Expectation: More than ten jobs and growth more than 50% New Product- Market High or Medium tech sectors Exporting: More than 25% of customers outside the country TEA EBO TEA EBO TEA EBO TEA EBO UK France Germany US

19 High Job Expectation

20 Headline Findings from 2014 The TEA rate in 2014 of 8.6% further confirms the higher longterm trend in early-stage entrepreneurial activity in the UK. UK has pulled ahead of France and Germany in the entrepreneurship stakes - for the last four years it has significantly outperformed both of these countries in the number of early-stage entrepreneurs In 2014 one in five working age individuals in the UK intended to start a business within the next three years, were actively trying to start a business, or were running their own business.

21 Headline Findings from 2014 (2) Growth in early-stage entrepreneurial activity in the UK is mainly because more men, especially those aged between 50 and 64 years old, are taking the first steps to running their own business. While this means that the gender gap in earlystage entrepreneurship has risen this year, a longer term view reveals that the TEA rate of 5.7 per cent for women in 2014 has almost doubled in ten years.

22 Headline Findings from 2014 (3) Entrepreneurial attitudes: the percentage of nonentrepreneurs of working-age in the UK who agreed there were good opportunities for starting a business in their local area in the next six months has now risen to 37 per cent in This marks a return to pre-recession levels of 2007 and suggests a growing sense of optimism among the wider population for business start-up.

23 Deepening Analysis and New Directions Work has commenced in 2013 & 2014 to develop a pilot Panel Study of Entrepreneurial Dynamics (PSED) in the UK led by Professor Paul Reynolds (Marie Curie Research Fellow at Aston)) GEM UK core dataset will feed into the work of the Enterprise Research Centre (ERC) on High Aspiration Entrepreneurs ; Diversity and Small Firm Growth ; Understanding Motivations for Entrepreneurship ; Sociology of Enterprise ; Evaluation of SULCo for the BBB. (

24 Contact us: If you would like any more information about the GEM UK and Global projects and any of its activities please contact Professor Mark Hart Professor Jonathan Levie or Karen Bonner More details about the activities of GEM can be found at: